Fixed term investment

jacqueline41

I have received a letter from santander about a fixed term investment which was a guaranteed growth plan That matured in feb 2016 they have offered me an extra £218.83 as a redress as the FCA have challenged them about concerns they have received about the way they gave investment advice and the information they provided at the time i.e. I wasnt informed that i could loose the whole amount if santander became insolvent, or i didnt want to riskgetting less back than oaid in if I needed to get access to my money, should i take their offer ? Any help would be appreciated

dunstonh

should i take their offer ?

You have two options. Take it or reject it. One is more obvious than the other.

jacqueline41

thanks for your reply, might sound obvious. But i was not informed of the risks with this plan and my question is should i complain or go to a solicitor and ask for a higher figure ?

[Deleted User]

You have two options. Take it or reject it. One should be more obvious than the other.

dunstonh

But i was not informed of the risks with this plan and my question is should i complain or go to a solicitor and ask for a higher figure ?

As it has matured, the risks are now irrelevant as the risk events that were not covered did not happen.

There is nothing to gain extra here. If you go to a solicitor, you will end up paying them but getting no extra amount because of it.

simonvw

Hi, I was interested in your post about a letter from Santander, as I'm in a similar situation. I also posted on here about it.

In 2011 my wife and I each took out a Fixed Return Plan Growth cash ISA, which guaranteed our investment plus a lump sum back at maturity, which is this November.

I gather that Santander has been writing to people who took out certain investments then, but we've never received a letter. But a friend who took out a similar policy has, and told us about it. I've now raised it with Santander and they are 'getting back to me'.

The key thing really for us is whether the actual investment is at risk, or whether - as I hope - this has more been about a box-ticking exercise aimed at identifying people who didn't realise there was a maturity date and/or weren't aware they could lose money if they cashed it in early, as Santander now appear to be offering.

Also, the investments are only guaranteed in so far as Santander UK is concerned, but not if the Santander Guarantee Company fails. This I find a bit confusing.

Any feedback you might have about any communications with Santander would be really helpful, thanks

dunstonh

The key thing really for us is whether the actual investment is at risk, or whether - as I hope - this has more been about a box-ticking exercise aimed at identifying people who didn't realise there was a maturity date and/or weren't aware they could lose money if they cashed it in early, as Santander now appear to be offering.

It is largely a technicality. Santander incorrectly covered the FSCS protection in their risk warnings. Something you would probably have never picked up on yourself. Also, to be fair to Santander, the FSCS themselves didnt understand the FSCS protection on these types of investment prior to the credit crunch either.

Also, the investments are only guaranteed in so far as Santander UK is concerned, but not if the Santander Guarantee Company fails. This I find a bit confusing.

Banks have been compartmentalised and the UK bank is separate to the other countries (which is a good thing).

Santander were told to write out to all those where the risk warning was wrong and offer them the choice to stay put or leave the investment early without penalty. In some cases, a small amount of redress could be payable depending on the underlying assets value and the growth rates used in the structured product.